But, kelly, you do have a very special lineup of guests coming up from vegas there, dont you . Oh, yes, we do. We are live here at the home depot Managers Meeting in the mandalay bay, where, yes, there is some betting on march madness also going on. But in the next hour here home depots new ceo will be with me exclusively for his first interview since taking the top job. Plus, a whole lot more. In fact, we have several ceo interviews. Well talk about the strong dollar. Were going to talk about Different Things in the consumer and in the gambling space right now. And we might find out what the value of my college ring is with Rick Harrison. I know you were wondering what to take. Youve got your college ring. Youre going to find out what Rick Harrison of pawn stars thinks of that. Wayne newton is also on todays program. Youre going with the full star board here. Ill just say Rick Harrison broke my heart and leave it at that, until we find out what happened this morning. By the way, we should say, this is your very first time in las vegas. What do you think, so far . Yeah its an interesting place. I mean listen im here for less than 24 hours. As everybody has noted, next time i think it needs to be a little bit longer or with a, you know, people who can kind of show me the ropes, if you will. Im not sure i want to see the ropes. Its not your kind of town i know. But thats okay. We look forward to seeing you back here when you get back. Lets show everybody whats going on with the markets today. If it was up last night and down today, vice versa. The dow down 101 points. It was down 142 at the low. Apple, if youre wondering, the first day its a component of the dow, down about 30 cents right now. Not a real big contributor. S p is down 8 points. And the nasdaq very close to that 5,000 level. Thats something well be keeping an eye on as we move into this final hour of trading on this thursday. Lets get to our markets and our Closing Bell Exchange today. Ken ken ken and jim khan and Heather Hughes cnbc contributor from sun america funds. And im going to start with my friend, Rick Santelli in chicago. Rick, youve had a night to sleep on it or maybe you didnt sleep a wink last night after that fed meeting yesterday, but the markets have reversed themselves in many cases today. What is it what do you think the markets are saying about what the fed did yesterday, and that kneejerk reaction they had yesterday, to begin with . I think the kneejerk reaction is, it makes a lot of sense. I think many of the algorithmic, highfrequency, many people had positions that were long in the tooth, whether it was flat euro or flattening yield curve, and i think they blinked a little bit. But i think as the day wore on and the press conference wore on the market had it right. I guess the best way to say it is you know, most investors are still pleased to say it with the fed, even though they get a bit caught in the rigging. And heather, tell us where you see opportunity in this market right now, then. Yeah i think if you believe that the markets are somewhat overbought, based on the Federal Reserve holding rates lower for a longer extended period of time, five years now since the Great Recession in 2008 nine years since we had a fed rate hike or rate increase on shortterm rates, then you may want to look to reposition. However, if you believe that the markets are up from a fundamental perspective, when you look at earnings and Revenue Growth then i guess, investors are looking at this market and theyre looking at the rest of the world on a relative basis and saying the u. S. Still may be the strongest in the World Economy right now, even with the lower Economic Data weve had with gdp, retail sales, and consumer sentiment, as of late. Omar the last month or so, people have started to say, you know europes starting to look attractive here. Maybe we should do that especially with the European Central bank beginning the quantitative easing. Last night and plus the strong dollar helps as well, over there with their exports. But last night, it all reversed itself. And people were starting to say, maybe weve overthought this or maybe weve got it wrong. What do you guys at Charles Schwab did yesterdays fed meeting change your thoughts of what happened at all . I think what happened yesterday with the fed is the beginning of what were going to see going forward. I think the reaction yesterday felt like the stimulus. If you take a snapshot of the Asset Classes that performed well last night relative to what happened four years ago, it looks the same. You basically have lower oil, higher dollar higher oil, all the risky assets are outperforming. It absolutely felt like stimulus once again. Thats not the normal market. I think the only lesson from yesterday is that well see higher volatility. So well see higher volatility a little bit of the jump today reversing back. What i think were seeing today is more normal than what we actually saw yesterday afternoon. Does that mean ken as youve indicated, that you think were approaching the end of this bull market . Well i always look at the market as a yoyo that im playing with as im riding on an escalator thats not good. And the escalator is the direction of the economy. So if the economy is trending in the right direction, what the yo owe is doing at the time is not so important, because the next high will be higher than the previous. And vice versa, if were trending down on the economy, that yoyo, the next downward will be lower. So right now i look at the trend of the economy and see that as a positive. So right now with the dow being where it is and the market being low and all this volatility, i think you buy on the dips the. But i do think, as you said that by the end of this year this party will come to an end. I think recessions the market looks the for recessions. Its forward looking. And i think next year is when the recession will come so if you back it up six months it puts us into the end of this next year next year a recession . Yes. What triggers the recession, ken . What triggers a recession is oversupply. When you have a booming economy, prosperity triggers recessions believe it or not. Because when you have a lot of supply, the businesses in the economy want to supply the demand. So everybody stocks up on inventory, Home Builders build tons of houses and then all of a sudden theres this massive oversupply. And when that happens, then all the retailers are laying people off, and all the Home Builders are going bankrupt. Yeah but the builders do you think the builders are overbuilding right now . Because it seems like supply constraint is still the issue for the Housing Market. I think everybody is going to try to stock up with as much as they can. They dont want a customer to walk in and not be able to buy their product or service. They want to have as much of that as possible. But we can even look at the oil markets right now, not just the housing sector when youre talking about oversupply and booms and busts. And the oil markets may have also been encouraged excessive borrowing and risk taking due to lower rates right now, when you have a lot of supply and inventory on the books as well, not just in the housing sector. Thats another area of concern. Hey jim khan let me bring you into this conversation here. You know the fed, the net effect, the takeaway was that they were becoming more dovish because they were lowing their expectations for growth and Interest Rates further out. Meaning that, as she said were taking the word patient out, but that doesnt mean were going to be impatient at this time. Do you see greater growth down the road or are we going to be bumping along the bottom for a while. We see greater growth. As the markets are adjusting to a new equilibrium, with the u. S. Markets adjusting faster than general, to kens point, i dont necessarily believe that markets follow the economy. If you look over the last hundred years, the years in which the stock market has actually performed the best have been years in which growth actually contracted because the best performance in equity markets is general when youre coming out of the bottom of the cycle. So even though the u. S. Is improving, i wouldnt look to the u. S. For the best equity market returns. I would actually look more broadly to places like europe where youre seeing large changes in gdp. So in france, in spain, in the rest of the eu where we saw relatively slow growth were getting large percentage increase ifs gdp over the last year, and that tends to be what drives the market higher. So were still very bullish on europe and asia. So jim, it sounds like you want to buy after the stock Market Correction has happened. Where do you see any when you look around the world, where do you see an opportunity to buy stocks that cheaply today . Well whats amazing is i like to look at price to sales, because you cant really mess with sales. Whether theyre in the u. S. Or in europe or in asia, sales are sales and you count sales. Theres no ebitda theres no gap accounting. I look at price to sales in the u. S. , i can buy stock at about two times. If i look at price to sales in emergeing markets, i can buy it at one time. And price to sales in europe, i can buy it 1. 5 times. So ive got a fire sale in the emerging markets and europe selling pretty cheaply, against the backdrop of improving expectations compared to where expectations were for those economies just three to four months ago. So i think the market is quite bullish for international and european stocks generally. Omar i saw you shaking your head. I know youre investing in cyclicals right now and you still believe in growth, but for how long . We saw the change ones the qe ended in october, and we saw these different styles growth outperforming value. We saw a little blip yesterday when value outperformed growth. But today we go back. The nasdaq is up the rest of the markets are down today. The market is preparing itself for the next phase of the cycle. You know were far away from a recession. Theres still plenty of liquidity that is being promoted overseas, and that always leaves beneficial for the u. S. So the recession talk is definitely something that may be very far away down the road and the fed already hinted that theres going to be very very measured in the way they raise rates. I have to say that the fed is one of the worst prognosticators of how the economy is doing. If you look at in 2007 ben bernanke was telling us that all was well and we didnt have to worry about subprime and all of that. And thats the same time when i told all of our clients and people that have listened to my radio show to get out of the market and stay out for all of 2008. And then, you know so you have to look at when things are at their very best that is the time you have to start getting worried. And when everybody thinks everything is going great and life is good thats the time when you start preparing for the worst, in my opinion. All right. Well, provocative thoughts and got everybody talking about it. Thank you all for join us today with your thoughts. Appreciate it very much. Omar, safe travels back to san francisco. Were heading to the close with about 50 minutes left in the trading session here. While we were talking, kelly, the nasdaq did briefly touch 5,000. Its flirting with it here. Well see if we can close above it for only the second time in 15 years. But meantime the dow and the s p are about half a percent lower right now. All right. Much more ahead on this special las vegas edition of closing bell. Weve got the ceos of the home depot, black and decker and boy gaming all coming up. Plus, i barter with Rick Harrison of pawn stars in his famous pawnshop. Youll see it. And no need to say danke schoen but wayne newton joins us as well. Kelly evans and wayne newton thats payperview material. Stay tuned. First impressions are important. Youve got to make every second count. Banking designed for the way you live your life. So you can welcome your family home. For the first time. Chase. So you can. Female announcer right now at sleep train get up to 48 months interestfree financing on tempurpedic. Save hundreds on beautyrest. Or choose 300 in free gifts with stearns foster. The triple choice sale ends soon at sleep train. Generally a down day on wall street, really just a reversal of yesterdays frantic moves in all the Asset Classes after the fed meeting yesterday. If it was down yesterday, its up today. If it was up, its down today. The dows down 103 again. Ill point out, first day of trading for apple, as a member of the Dow Jones Industrial average, and its down a fraction today. Here are all 500 components of the s p 500 index, mostly red, but a few green at this point. Kelly . Out to you in las vegas. All right, bill. Thank you very much. Im now joined by two very special guests coming to you life from home depots manager meeting here. Home depots ceo will be joining us shortly. But first, a pair of ceos who sell a lot of their stuff at home depot and have a pretty good perspective on how this economy is doing. Joining me now in a cnbc exclusive, John Lundgren and david lumbarly, black and decker home brand is licensed under spectrum. That deal, that sale happened a couple of years ago. Yes, december 12. Well talk about the products in just a moment. I want to ask you, john first about the strong dollar. Your perspective doing roughly half of your business overseas and also being involved with the National Association of manufacturers, this is one of the biggest upward moves weve seen in some time. What kind of impact is that going to have . It has tremendous impact kelly, on anybody who generates a significant portion of their revenues outside of the u. S. As you suggest, 50 of our revenues and about 60 of our production is outside the u. S. But what it has given us the opportunity to do as flexible as we can, weve moved some production back to the u. S. Most recently in north and south carolina. Weve been making professional power tools for about a year, under the dewalt brand and its been tremendously well received, but its also helped mitigate some of the cost pressure of the strong dollar. That being said, we have both translational and transactional pressure. We saw that when you talked about the effect that would have on your guidance. But this point about bringing workers back or your business back onshore is really interesting. Do you think that theres something bigger going on there outside of your company . Sure i think, manufacturing is still alive and well. Weve talked about the renaissance or rebirth of manufacturing in the u. S. U. S. Workers in general are paid a lot more than workers in many of the lowcost country. So as a consequence, they have to be a lot more productive. Using our products in the right facilities, they can be. And we have seen it. Obviously, the u. S. Also has a huge energy cost advantage. We dont happen to be an energyintensive business, yet weve still made the economics work of moving some production from mexico and china, thats not particularly labor intensive. Its component intensive and technology intensive, producing here in the states and its worked out very well. Lets talk about this innovation, david, that you guys especially are driving. I just saw and learned a little bit about kevo. Why dont you explain it. Its a new lockset system. Its run by blue tooth on your phone, so you can walk up and it knows who you are it lets you in lets you out, but more importantly, it tracks whos coming in and out of your house, and if youre a parent you would really like to know that. And now soon in another month, we have kevo plus you can lock or unlock your door from your phone at work or if someones locked out, you can let them in. This home automation is an exciting thing thats evolving. Does it give you any pause to think, this is a whole new source of vulnerability . Were very confident its not vulnerable. We spent a lot of time on that. And the Security Systems in general and home automation in general, but believe me we are on that. How does home automation do you think, affected Stanley Black and decker . Were not in the home automation business. It is the second largest commercial Security Company in north america. But it will have a big impact on our remodeling business, on home starts as we build, design and sell our products. It will have an impact. What else do you guys have coming out . Im looking at for example, fusian batteries. Where are these fusion batteries going to accomplish . For years people have wanted an alkaline battery to last longer. And you dont want to have to replace them constantly. Weve spent a lot of time. A battery is chemicals in a can. We finally developed one we call ray rayovac fusion that lasts longer than any other alkaline battery, and everybody will be able to buy a battery that costs less than the leading brand and lasts longer. When you have some devices that have to keep going and dont have access to another battery, you want it to last as long as possible. And batteries are big news in cordless power tools as well. You go back ten years a nickel cadmium batteries replaced batteries. And ten years ago, lithium ion took over but also very expensive. As the cost of those batteries came down, more and more power tools employed lithium ion technology. Now the next step has been brushless motors in professional power tools. Which means lighter, in terms of ergonomics. Dewalt premium power tool now is twice as powerful as a cordless tool was just ten years ago. So the combination of brushless motors, longer run time more powerful, but also much lighter. So a professional whos working all day on a job site it really makes a difference in the course of eight or nine hours. So that battery evolution was the first step brushless motors was the second. I did not expect there to be so much battery discussion here but i love it. Its a window into where this is heading. And would you both mind real quick giving me your sense of what the consumer is ultimately like in this country . Sure. We sell home and garden pet, batteries, Kitchen Appliances